S&P keeps Swiss Re on negative watch

Standard & Poor's said the ratings of Swiss Reinsurance Co. and its related entities remain on CreditWatch with negative implications, where they were placed on Nov. 18 following the company's announcement that it had reached an agreement with General Electric Co. (AAA/stable/A-1+) to acquire the latter's reinsurance operations, GE Insurance Solutions Corp. (BBB+/positive watch).

Ratings on watch include the AA long-term counterparty credit, insurer financial strength and senior unsecured debt ratings and the A+ junior subordinated debt ratings.

S&P said the continued CreditWatch status reflects the execution risk associated with integrating a group of the size and complexity of GE Insurance Solutions, which is rated lower than Swiss Re. The ratings on GE Insurance Solutions partly reflect the state of flux that it has been in for a number of years, caused by uncertainty over the long-term ownership of the group.

These risks are partly offset, however, by Swiss Re's track record of successful transatlantic acquisitions and the advanced integration planning already in place, the agency said.

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